It’s important to calculate FCF ex-SBC.
SBC is a real cost of business and equity holders should be aware of the dilution.
Sometimes, buyback is smaller of SBC so shouldn’t be touted too much. Net buyback is more important.
This is a series of posts. Starting with Kuaishou and Bilibili.
Side note: FCF/Capex is defined by companies if they present, which could be subject.
Kuaishou (HK.1024)
2023
FCF: 15,881 mn rmb
SBC: 3,570 mn rmb, or 22% of FCF
Note: SBC has down as stock prices are down. FCF improved; was negative in 2022
Bilibili ($BILI)
2023
FCF: -1,033 mn rmb (negative FCF)
SBC: 1,133mn rmb (as FCF is negative, SBC is making it more negative)
Note: SBC is flattish over past 3 years. FCF improved over 2022 (-6,611 mn rmb), but still negative in 2023.
